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TMI Blog2019 (6) TMI 1093X X X X Extracts X X X X X X X X Extracts X X X X ..... (1)(a)(b), the period for which interest liability is calculated is the period between the date on which return was due to be filed and the ending on the date, the same is actually furnished and when no return is furnished, ending on the completion of assessment under section 144. Section 234A(1)(b) contemplates the situation where no return has been furnished, in such a case, the period prescribed is ending on the date of completion of the assessment. Once the assessee conceded his liability to pay interest under section 234A, there was no point in going further into the matter and exemption whether interest was not liable to pay. As assessee submits that the assessee could not be made liable to pay interest for the period during whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A) is bad-in-law. 2. The order of ld. CIT(A) is bad-in-law and against the principle of natural justice. 3. The ld. CIT(A) erred in holding the excess interest levied u/s 234A by the Assessing Officer without appreciating that interest under section 234A could have been charged only till the time tax liability was outstanding. 4. The ld. CIT(A) erred in upholding the levy of excess interest under section 234B. 2. Brief facts of the case are that the assessee is a Private Limited Company engaged in the business of Multi Level Marketing. No return of income was filed by the assessee within the time prescribed under section 139 or 139(5). The Assessing Officer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tative (AR) of the assessee and ld. Departmental Representative (DR) for the revenue and perused the material available on record. At the outset of hearing, the ld. AR of the assessee submits that he is not pressing the Ground No.1 2 of the appeal. Considering the submissions of assessee, the ld. AR of the assessee, the Ground No.1 2 of the appeal are dismissed as not pressed. 4. Ground no.3 relates to levy of interest under section 234A. The ld. AR of the assessee submits that due date of filing return of income for relevant Assessment Year was 15.10.2010. The assessee has paid tax on 24.03.2014, therefore, the assessee was liable to pay interest for 42 months only under section 234A. No interest under section 234A can ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 03] 129 TAXMAN 79(Mum). 6. On the other hand, the ld. Departmental Representative (DR) for the revenue relied upon the order of lower authorities. 7. We have considered the submission of both the parties and perused the material available on record. We have noted that the Assessing Officer has computed the interest from 01.10.2010 to 30.06.2017 i.e. for 81 months. Though, the assessee was liable to pay interest only till March 2014 i.e. for 42 months only. In principle we are in agreement with the calculation of interest furnished by the assessee, which we have referred in para 4 above. . 8. We have further noted that the ld. AR for the assessee submitted before us that on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ompute the interest up to the date of filing of return. Hence, Ground No. 3 of the appeal is allowed. 10. Ground No.4 relates to interest under section 234B. We find the interest u/s 234B is chargeable from the first day of assessment year till the date of assessment year on the amount of assessed tax due ( i.e. tax payable TDS) from time to time. We direct the Assessing Officer to compute the interest under section 234B as under:- From 1.4.2010 till Marcfh 2014 on the assessed tax due which is considered as X Tax payable TDS (+) X = Y Then calculate interest from 1.4.2014 till the date of completion of assessment on the amount of Y. 11. Therefore, we d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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